Volunteer Basic Training Notes

Volunteer Basic Training Notes

Form 1040, Pg 1 Volunteer Basic Training Notes

2 VOLUNTEER BASIC TRAINING NOTES

Form 1040, Pg 2 VOLUNTEER BASIC TRAINING NOTES 3

Review: Exemptions 1. Where should you look for help in determining dependency exemptions? 2. Walter White has been married for 10 years. He and his wife have one child, and they pay all of his support. The child 23 years old and permanently and totally disabled. How many exemptions will Walter receive and what is the total amount of his exemptions? 3. Niki lives with her parents who provide all of her support. Niki has a part-time job and is filing her tax return as single. How many exemptions will Niki receive and what is the total amount of the exemption? 4. Jamie lives in Birmingham. His mother is an unmarried, U.S. citizen who lives in Montgomery. She only made $2000 in 2014, so Jamie provided almost all of her support. Is Jamie s mother his qualifying child, qualifying relative or neither? Why? 5. Courtney and Christian are divorced and signed Form 8332: Division of benefits. Their two children live with Courtney for most of the year. Who receives each of the following benefits? a. Earned Income Credit: b. Dependency Exemption: c. Head of Household: d. Child and Dependent Care Expenses: e. Child Tax Credit: _ Review: Filing Status 1. Cassie s husband died in 2011. She has one son, Parker, who is 10, who lives with her all year. She provides all of Parker s support and all of the cost of keeping up the home. Cassie s filing status should be. 2. Brendan and Kaitlin separated in August of 2014. Their child, Alexandra, lived with Brendan all year. Brendan should file as. Kaitlin should file as. 3. Lane s husband died in 2013. She has two children and provides all the cost of keeping up her family s home. Lane s filing status should be. 4. Lorie works as a teacher and pays all of the cost of keeping up the home for herself and her cousin, Malcolm. He lived with Lorie for 7 months while he was unemployed. Lorie should file as. 5. Allison and Logan got married on December 28, 2014. She had 9 bridesmaids, and made Logan pay for the entire wedding. They are currently honeymooning in Bora Bora. When they return to the United States to file their taxes, what must their filing status be?. 4 VOLUNTEER BASIC TRAINING NOTES

Interview # Switch to Tax Forms VOLUNTEER BASIC TRAINING NOTES 5

Main Info Form Check all of the taxpayer s information Check the filing status Check the information about the dependents, including if the boxes for Dependent Care Expenses, Child Tax Credit and the Earned Income Credit should be checked Check the number of exemptions In the State Information Section, either check the box if you are not preparing a state return for the taxpayer or type in AL for either the full year resident or part-year resident box In the PIN section, have each taxpayer enter a 5-number pin Form W-2 Link Line 7 " W2 6 VOLUNTEER BASIC TRAINING NOTES

Unreported Tips Link Line 7 " Form 4137 Interest Link Line 8a " Sch B " 1b " Interest Stmt VOLUNTEER BASIC TRAINING NOTES 7

Dividends Link Line 9a " Sch B " 5a " Divident Stmt 2013 State Tax Refund Unemployment Link Line 19 " 1099G Wkst No: Check No Yes: SEE YOUR SUPERVISOR 8 VOLUNTEER BASIC TRAINING NOTES

Social Security Benefits Link Line 20a " 1040 Wkt 1 Gambling Winnings Link Line 21 " W2G VOLUNTEER BASIC TRAINING NOTES 9

Gambling Winnings (no W2G) Link Line 21 " 1040 Wkt 7 Credit for Child and Dependent Care Expenses Link Line 49 " 2441 Retirement Savings Contribution Credit Link Line 51 " 8880 _ 10 VOLUNTEER BASIC TRAINING NOTES

Investing in Savings Bonds " Add Form 8888 in Loaded Forms Menu VOLUNTEER BASIC TRAINING NOTES 11

ALABAMA RETURN STEP 1: Make sure you filled in AL on the Main Info Page on the Loaded Forms Menu and chose either part-year or full year resident. STEP 2: Click YES to e-file the return on bottom of the AL 40 Pg 1. STEP 3: Go to Part III: Dependents on AL 40 Pg 2 and determine the dependents that can be claimed on the Alabama return by selecting if the taxpayer provided over half of each dependent s support. STEP 4: Go to the Filing Status and Exemptions section on the AL 40 Pg 1 and check the filing status. - If Head of Household was selected on the Federal return, TaxWise selects Single on the Alabama return. Answer the question. - If the answer is YES, the filing status will change to Head of Family. - If the answer is NO, the filing status will change to Married Filing Separately. 12 VOLUNTEER BASIC TRAINING NOTES

STEP 5: Go to Part IV: General Information on the AL 40 Pg 2. Answer the question, and if the answer is NO, then state a reason for not filing. STEP 6: Go to Part IV: General Information on the AL 40 Pg 2. Find the W-2 that is the taxpayer s current employer and input the copy number for that person. If the taxpayer is unemployed, enter 0. STEP 7: Go to Part IV: General Information on the AL 40 Pg 2. If the taxpayer has Unemployment Compensation or Social Security Benefits, you need to click YES and then fill out the description and amount information. Step 8: Go to Part V: Direct Deposit or Refund or Electronic Funds Withdrawal on the AL 40 Pg 2. Choose the correct option for how the taxpayer wants to receive a refund or pay a balance. VOLUNTEER BASIC TRAINING NOTES 13